From our Bureau of Socialist Social Justice with some assistance from our Ministry of Unaffordable Luxuries Bureau
Happy New Year! How’s this for social justice? Castro, Inc. has rewritten the laws that govern the importation of vehicles, setting high prices for used vehicles and adding monstrously high taxes on every purchase. In addition, it is requiring those who purchase electric vehicles to buy a high-priced charging station and to pay tax on that too. And never mind the constant power blackouts if you dare to go green with an EV . . .
Since these prices and taxes are way beyond the range of what the vast majority of Cubans can afford, who, exactly, does Castro, Inc. have in mind as potential buyers? God only knows. This is all bizarre enough to be beyond comprehension, another totally dysfunctional quirk of Castrogonia’s monopolistic military junta.
From CiberCuba
The Cuban government has announced a new regulation that establishes the prices for the importation and sale of vehicles in the country.
This regulation, published in Official Gazette No. 128 on December 30, 2024, will come into effect on January 1, 2025, and has sparked controversy due to the high costs that citizens interested in acquiring a means of transportation will have to bear.
The prices, converted into U.S. dollars at the official exchange rate, paint a picture that makes it difficult to access vehicles, even for those with incomes above the national average.
According to the regulation, a standard internal combustion car will cost 2,040,000 Cuban pesos if the model is less than five years old, which is approximately 15,900 dollars.
If the vehicle is between 5 and 15 years old, the cost will be 1,020,000 CUP (7,950 dollars), while those older than 15 years will be sold for 510,000 CUP, approximately 4,000 dollars.
High-end cars reach even higher figures, exceeding 3,500,000 CUP, which is equivalent to over 27,000 dollars.
This price range is well beyond the reach of most Cubans, whose average monthly salary barely covers basic needs.
The high cost is not limited to cars. New motorcycles, considered a more economical transportation option, are also unaffordable for many.
A motorcycle that is less than five years old will cost 265,000 CUP, which is equivalent to over 2,000 dollars.
On the other hand, although these figures are already high, vehicles are additionally subject to extra taxes, such as the Special Tax on Goods and Services, which further increases their final price.
This tax, applied progressively based on the type of vehicle and its source of energy, can reach up to 35% for internal combustion cars and other luxury models.
Electric cars have lower taxes and, in some cases, are exempt from the Special Tax, but buyers must purchase charging stations to use them.
This, combined with their high initial cost, restricts the population’s access to these more sustainable options.
Furthermore, only a small segment of the population will have access to significant benefits. Cuban collaborators abroad and diplomatic staff, for example, will be able to import vehicles at reduced prices and with tax exemptions, a provision that favors a privileged minority while the majority remains excluded from these advantages.
The new legal framework also imposes limits on the number of vehicles that a person can purchase within a five-year period, capping it at a maximum of six units.
Starting from the purchase of the third vehicle, the applicable taxes increase dramatically, reaching up to 100% of the vehicle’s price in the case of a sixth acquisition. These measures aim to regulate the market but also highlight the elitist nature of the regulations.
The Cuban economic context, characterized by low wages, high inflation, and a lack of opportunities, makes these prices unattainable for the majority. As a result, the purchase of a car, far from being a basic necessity, remains a luxury reserved for a minority.
Meanwhile, the general population will continue to rely on a deteriorated and overloaded public transportation system that does not provide effective solutions to mobility issues.
They know ordinary Cubans cannot possibly afford this stuff, and even the “diaspora” would be hard pressed to cough up that much money. So no, it doesn’t make a great deal of sense.